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randomness"That stampede you're hearing? It's folks running for the exits."
The biggest problem right now is that no one has any clue who all are holding the bag, or even how big the damn bag is. So while it doesn't hurt that the Fed and the ECB are opening the credit windows and throwing money at the banks, that doesn't make any of the banks less fearful and suspicious of each other.
And fear and suspicion? Bad for markets, just like they're bad for any other relationships.
The biggest problem right now is that no one has any clue who all are holding the bag, or even how big the damn bag is. So while it doesn't hurt that the Fed and the ECB are opening the credit windows and throwing money at the banks, that doesn't make any of the banks less fearful and suspicious of each other.
And fear and suspicion? Bad for markets, just like they're bad for any other relationships.
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Date: 2007-08-16 04:46 pm (UTC)hm... correct about the timeline for easy credit, though I don't think people (your average Joes and Janes) really noticed until after Shrub came into office. Remember all those folks predicting a huge economic crash after 9/11? It would have been far worse if easy credit hadn't stuck around.